Offshore manufacturing began to take shape in the 1970s but really took off in the 1990s as global supply chain logistics made it possible for OEMs and component companies to set up shop in another country, where labor costs were much lower than in the United States.
But after the COVID-19 pandemic exposed supply chain vulnerabilities, manufacturers found more value in having control over the supply chain than in lower labor costs. As a result, OEMs began shifting production back to the U.S. to have more control over the supply chain while also bringing jobs and innovation to American soil.
For packaging OEMs, reshoring often takes shape one decision at a time. The path may involve bringing a machine’s production to the U.S., replicating an established operating model closer to customers, or continuing a domestic manufacturing and sourcing strategy that has been in place for decades.
This Packaging OEM special report examines the factors shaping reshoring decisions, including:
- Different routes to building U.S. production capabilities
- Greater control over manufacturing and the supply chain
- The role supplier relationships play in domestic production
- How tariffs, automation, workforce challenges, and access to capital shape reshoring decisions
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